Cowell, Frank, Litchfield, Julie and Mercader-Prats, Magda (1999) Income inequality comparisons with dirty data: the UK and Spain during the 1980s. Distributional Analysis Research Programme; DARP 45, 45. Suntory and Toyota International Centres for Economics and Related Disciplines, London School of Economics and Political Science, London, UK.
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Inequality comparisons between countries and over time should take into account problems of data imperfection. We examine the contrasting experience of the UK and Spain during the 1980s in terms of the distribution of disposable income. We consider whether the apparent divergence in inequality could be attributable to deficiencies in income data including under-reporting.
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